passion for angola.

91 Pages·2015·2.17 MB·English

PASSION FOR
ANGOLA.
To realise, develop and participate in Angola’s growth.
This is where we apply our passion. To always do better.
A commitment capable of making a difference to the
realisation of our country’s dreams and ambitions, to
the outcome of family projects and to overcoming the
challenges faced by businesses.
For BNI, growing means growing with Angola, always.
CONTENTS
We Build the Future with You.
| Message from the Chairman 06
| Main Indicators 10
| Banco de Negócios Internacional 12
| Organic Structure 16
| Corporate Management Model 18
The Value of Relationships.
| Historical Milestones 22
| Geographic Presence and Network of Branches 26
| Campaigns 28
| Sponsorships 32
We Grow with Angola.
| Human Resources 36
| BNI Growth Project 40
| Business Support Areas – Synopsis 44
Passion for Business.
| Business Developments 58
| Business Areas 60
| Distribution Channels 64
| BNI Customer Breakdown 68
Commitment to People.
| Risk Management 72
| Regulatory Framework 80
| Economic and Financial Environment 84
Soundness of Results.
| Financial Review 96
| Financial Statements 108
| Opinion of the Auditor 174
| Opinion of the Board of Auditors 176
03
WE BUILD
THE FUTURE
WITH YOU
| Message from the Chairman
| Main Indicators
| Banco de Negócios Internacional
| Organic Structure
| Corporate Management Model
MESSAGE FROM
THE CHAIRMAN
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H ECONOMIC ENVIRONMENT MONETARY POLICY AND BANKING SECTOR
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E
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T In 2014, despite the buffering effect of the last quarter from the drop in Government revenues due to Due to structural problems, foreign credit became more expensive in the last quarter of the year,
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O the sharp decline in the price of a barrel of oil on the international market, GDP growth persisted in limiting private and public investment options. This trend will persist in 2015.
R the Angolan economy on the order of 5.3%.
F
E Beginning in October 2014, the base BNA interest rate rose from 8.75% to 9.00% which, coupled with
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A Prospects for 2015 include Angolan GDP growth between 2% and 4%. One of the structural measures the higher ratio of mandatory bank reserves (from 12.5% to 15% in November 2014), limited the loan
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ES to be implemented is the faster diversification of the economy, maintaining the pace of economic capacity of economic agents, forcing banks to charge higher interest. This trend has continued, with
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growth, thereby resulting in higher growth for the non-oil sector than the oil sector. the mandatory bank reserve ratio in domestic currency reaching 20% in February 2015.
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2 A large part of Angolan foreign debt stems from bilateral programs, reflected in a less relevant risk The profits of Angolan banks fell 52% between 2013 and 2014, according to the consolidated sector
TS assessment. The Government is making plans to finance the budget deficit, both in the foreign market balance sheet as reported by BNA, due to higher provisions for general credit risks, which tripled from
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(by issuing eurobonds, potentially creating the ability to attract foreign investment by upholding the one year to the next, together with higher administrative costs for the expansion of the network of
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O country’s rating), and in the domestic market (by issuing treasury bills, with an interest rate indexed to branches.
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C changes in the kwanza against the dollar).
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D Assets in domestic currency grew 7.1% year-over-year at 64.1%. Deposits rose around 20%, with
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The country’s exchange reserves, which covered 7 to 8 months of importing in 2014, are considered demand deposits accounting for 57% of the total, of which 54% were applied to economic lending
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T adequate, with half originating from the fiscal surplus. Thanks to the current environment, they are and the remainder to treasury bonds.
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O expected to cover five months of importing of goods and services in 2015.
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E Total banking assets grew 14.8% year-over-year, while credit was concentrated in non-production
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In the first half of 2014, inflation hit an all-time low of 6.9%, allowing for stable prices which are activities, with a minimum impact on economic growth.
expected to continue in 2015 in an attempt to combat inflationary trends, keeping the inflation rate
below the range of 7% to 9%.
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H BANCO BNI
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T BNI ended 2014 with total assets of USD 1,964,683 thousand, up 4.13% compared to 2013. As regards the capital market, with the establishment of the the Angola Debt and Securities Exchange
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O (BODIVA), BNI hopes to become an operator, given BODIVA’s potential future importance as an
R Customer deposits totalled USD 1,510,204 thousand, with regulatory equity at USD 188,200 thousand alternative source of economic financing.
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E and a solvency ratio of 11%.
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A Activation, with IFC, of the first line of credit of USD 25 million under the Global Trade Finance Program
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ES The 2014 result before taxes was USD 14,087 thousand, a year-over-year decline in line with events in (BNI is the first Angolan financial institution to obtain this facility).
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the sector, due to the need for higher provisions for general credit risk and higher administrative costs.
4 | It should also be noted that the year was marked by lower growth in the credit portfolio due to the The medium and long-term credit limit for export credit financing with Commerzbank was increased
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2 economic environment and a prudent approach, bearing in mind the prospects for 2015. to €70 million, aimed at financing several industrial projects in the country (this is the first instance of
TS a private Angolan bank using this type of credit facility).
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We continued our internal restructuring strategy in 2014, focusing on ongoing Employee training
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O (135 new admissions), adapting organic structures and internal processes to the new Internal Control Finally, I wish to thank our Customers for their preference, our shareholders for supporting us in this
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C System for Financial Institutions handed down by BNA, and continuing the strategy of cost reduction journey, my colleagues on the Board of Directors and all of the bank’s Employees for their dedication
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D and implementing programs for information security and business continuity and recovery. and commitment to this undertaking.
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A
T The credit and operations workflow platform was deployed in a wide range of areas, from origination
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O to granting and recovery. Mário Abílio P. M. Palhares
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E Chairman of the Board of Directors
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BNI is present in 14 provinces, with 8 new branches opened in 2014 for a total of 85 (including business
centres, branches and outlets) in our commercial network. According to a survey by KPMG, BNI was
considered the second best bank in the country in terms of service quality and Customer satisfaction.
We continued to play a part in Angolan Government programs to promote the domestic economy,
such as Angola Investe and Bankita.
To encourage loyalty and offer additional products and services to our Customers, BNI Europa went
into business, obtaining authorization to establish an insurance firm, whose launch is scheduled
for 2015.

From a regulatory standpoint, work began to adopt internal business sustainability standards and
lay the groundwork for IAS/IFRS accounting standards, whose implementation will have transitional
impacts between 01 January and 31 August 2015.
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MAIN
INDICATORS
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DI 2014 2014 2013 2013
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I AOA’000 USD’000 AOA’000 USD’000
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I Net Assets 202 093 137 1 964 682 184 175 934 1 886 690
A
M Weighted Net Assets 161 470 889 1 569 766 143 878 738 1 473 888
4 | Equity 19 940 984 193 859 21 118 762 216 339
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0 Regulatory Equity (1) 19 302 883 188 200 21 612 701 221 400
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S Total Credit 88 444 953 859 832 85 963 777 880 609
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N Total Resources (2) 162 322 834 1 578 049 138 719 482 1 421 037
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O
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C Financial Margin 6 545 513 66 377 5 944 272 61 614
A
D Trading Margin 4 311 565 43 723 2 682 562 27 805
N Service Margin 3 304 498 33 510 2 426 184 25 148
A
T Banking Income 14 161 577 143 609 11 053 018 114 568
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O Overhead 8 170 167 82 852 7 436 305 77 080
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E Cash Flow 7 128 432 72 288 5 361 894 55 578
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Net Income for the Year 1 296 479 13 147 2 759 277 28 600
2014 2013
Return on Assets (ROA) 0,64% 1,50%
Return on Equity (ROE) 6,72% 12,77%
Cost-To-Income 57,37% 70,17%
Solvency Ratio 11,38% 14,92%
Past-Due Credit/Total Credit 3,53% 2,10%
Coverage of Past-Due Credit by Provisions 193,76% 93,04%
Coverage of Total Credit by Provisions 6,84% 1,95%
Cost of Risk 6,13% 0,79%
Transformation Ratio (3) 59,12% 63,32%
No. of Employees 779 743
No. of Business Centres 7 6
No. of Branches 47 43
No. of Outlets 31 28
No. of Customers 179 083 127 667
(1) Equity calculated in accordance with BNA Instruction no. 3/11 of 8 June;
(2) Caption comprised of Customer resources, Institutions, liability for securities and resources of other entities;
(3) Transformation ratio includes Customer deposits and other amounts owed.
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BANCO DE NEGÓCIOS
INTERNACIONAL
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A GOVERNING BODIES
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S I Presiding Board of the General Meeting of Shareholders
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CI Chairman
Ó
João de Matos
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N Vice-Chairman
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D Mário Dias
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N Board of Auditors
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B
4 | Chairman
1 Luis Manuel Neves
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S Member
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N Licínio de Assis
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C Member
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Dina Maria Leote de Oliveira
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D
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A Board of Directors
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O Chairman
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E Mário A. Palhares
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Vice-Chairman
José Boyol
Director
Sandro Africano
Director
Lara Boyol
Director
Pedro Palhares
Director
Bruno Inglês
Auditors
KPMG - Auditores e Consultores, SARL
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L
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A MISSION, STRATEGY, VALUES
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E AND SOCIAL RESPONSIBILITY
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Ó BNI’s Mission Social Responsibility
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E We are a leading bank in Angola. We have a profound knowledge of the financial sector and the markets A passion for people elevates BNI’s sense of social responsibility, which is why we ensure, respect
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O in which we operate. We create value for our Customers, partners, shareholders and Employees and do everything we can to make society a better place. In 2014, the following institutions were
C through our range of innovative products and services, adhering to high standards of conduct and to supported:
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A the corporate principles of transparency and rigour.
B
4 | • “Kuzola” children’s home – BNI sponsored this Institution by donating school materials to its students;
1 • Lwini Foundation – donations were made to the foundation’s “Hydrocephalus Response” project;
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2 BNI’s Vision • Portuguese Cooperative for Angolan Education – travel assistance for students from the Portuguese
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T school, for social purposes, and cooperation in the purchase of two educational support buses
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U BNI aspires to be a model of financial sustainability, operational efficiency and image in the national of the same Institution;
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C and international marketplace. • Mandume Ya Ndemuafayo University – support for this Institution’s second science conference,
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an event disseminating knowledge on renewable energies, the environment and tourism;
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D We endeavour to contribute to the success of our Customers’, shareholders’ and Employees’ initiatives, • Union of Portuguese-Speaking Capitals (UCCLA) – BNI supported the tribute ceremony to the
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A offering innovative and competitive solutions. ex-associates of the “Casa de Estudantes do Império” common home;
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We seek to expand our involvement into new business segments, forging sound partnerships.
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BNI’s Values
Focus on the Customer – We create products centred on our Customers’ needs, demonstrating a total
commitment to exceeding their expectations so as to guarantee their satisfaction and loyalty.
Trust – Our Customers are our most important asset. We forge relationships for the future based
on trust, on business sustainability, on confidentiality and transparency.
Rigour – We act with ethics, conscience, responsibility and professionalism.
Innovation – We are geared to innovation, striving to create new tools, methodologies, products
and services, which place us at the forefront of the Angolan and international financial market.
Teamwork – We respect people. We share the responsibility of improving our performance in order
to attain the defined goals, for the success of all.
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ORGANIC
STRUCTURe
e
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S external Audit Board of directors Consultants
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r Advisory Credit
O Structures Chair of the Board Committee
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0 executive
2 Secretary Vice-Chair of the Board ALCO
S to the AdM Committee
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OU Company executive director technology
C Secretary Committee
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A executive director
D Internal Control,
N Client risk and Compliance
Ombudsman Committee
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T executive director
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O Institutional Operations
P relations Committee
E executive director
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Strategy
Oil & gas Committee
Corporate
Finance Office
Compliance
Office
Planning Finance Commercial
Internal Audit Corporate Accounts
and Control and International division
division Banking division division
division division (networks)
Marketing and Organisational Credit Assets
Communication development Private Banking Analysis and Logistics
division division division and recovery division
division
electronic
human resources risk division Banking
division division
training
and Career
development
division
Information Operations
Systems division division
Legal Specialised
division Oversight division
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CORPORATE
MANAGEMENT MODEL
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N BNI’s governance model complies with and meets the requirements laid down in the Financial This board is composed of 7 members elected by the General Meeting of Shareholders. Notwithstanding
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M Institutions Act (Law no.13/05 of September). the functions generally attributed by law and others by Banco de Negócios Internacional’s articles of
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G The governing bodies are made up of the General Meeting of Shareholders, the Board of Directors, the association, the Board of Directors’ responsibilities include:
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N General Board and the Board of Auditors.
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M The members of the governing bodies are elected by the General Meeting of Shareholders for a term • Defining the Bank’s general policies and approving the annual and multi-year plans and budgets;
E of 4 years, with re-election being possible. • Setting up the Bank’s internal organization and delegating powers to other levels of the hierarchical
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A BNI’s structure is composed of: the General Meeting of Shareholders; the Board of Directors; the Board chain;
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O of Auditors; the General Board; the Advisors; the Executive Secretariat and 24 Departments, as well as • Managing the Bank’s business, executing all the acts and operations which form part of its corporate
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R the existence of 6 committees (Credit Committee, ALCO Committee, Technology Committee, Risk and purpose;
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C Compliance Internal Control Committee, Operations Committee and Strategic Committee). • Appointing representatives or authorized signatories for the purpose of performing certain acts;
4 | • Executing and ensuring compliance with provisions of the law and articles of association, and with
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0 the General Meeting of Shareholders’ decisions;
2 GENERAL MEETING OF SHAREHOLDERS
S • Proposing to, the General Meeting of Shareholders, the continuity of the governing bodies whenever
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N these are justified after careful consideration;
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O BNI’s General Meeting of Shareholders is composed of all the individual or corporate members whose • Exercising other functions entrusted to it by the General Meeting of Shareholders.
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C names appear on the shares listed in the company’s share register and which confer the right to vote.
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This registration has to be done, as set out in the Bank’s articles of association, up to 10 days prior to The members of the Board of Directors also form part of the Credit Committee and the Internal Control
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N the meeting date. and Quality Committee, presided over by the Chairman of the Board of Directors who also chairs the
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T Audit Committee.
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O At the General Meeting of Shareholders, matters of importance for the company are discussed by the
P shareholders. Shareholders without voting rights can take part in the deliberations when the Chairman
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R OVERSIGHT
of the Presiding Board of the General Meeting of Shareholders and the other members so authorize.
The General Meeting of Shareholders is responsible, besides the provisions laid down in the law, Board of Auditors
for observing the functions embodied in Banco de Negócios Internacional’s articles of association:
a) Electing the members of the Presiding Board of the General Meeting of Shareholders, the Board The oversight of BNI’s business is carried out in terms of the law by a Board of Auditors composed
of Directors and the Board of Auditors, and appointing their respective Chairmen; of three members in office and one or two alternate members. The Board of Auditors meets in the
periods prescribed by law and extraordinarily whenever requested by the Chairman, by the majority
b) Electing the General Board members;
of its members or by the Board of Directors.
c) Electing the Remuneration Committee members;
Decisions are made by a majority of votes cast, and in the mandatory presence of more than half of
d) Approving the annual report and accounts, as well as the Board of Auditors’ report;
its members in office.
e) Deciding on share capital increases proposed by the Board of Directors.
General Board
EXECUTIVE MANAGEMENT
This board is composed of an even number of persons, not more than fifteen. The members in office
Board of Directors of the General Board are: the Chairman of the Board of Directors and the Board of Auditors Chairman.
BNI’s Board of Directors is the governing body charged with overseeing the company’s general interests, Pursuant to the law, BNI’s General Board members cannot exercise functions at other Financial
performing all the necessary or appropriate acts to carry out the activities envisaged in the company’s Institutions, except where the exercise of such functions is at a Financial Institution in which BNI has
corporate purpose. The Board of Directors is composed of 5 resident members elected by the General a direct or indirect participating interest.
Meeting of Shareholders. According to the articles of association, the Board of Directors safeguards
shareholders’ interests while also being the body responsible for the bank’s overall management,
proposing and ensuring the implementation of the approved Business Plan.
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